Risk Management

Description

The NPMS Real Property Procedure on Risk Management has been prepared in order to describe the components and requirements of the NPMS as applied to the management of project risks.

Summary of the Procedure

Risk management considerations must be applied throughout the life of the project. The NPMS Real Property Procedure on Risk Management describes the process to be followed for managing risk in relation to the 9 phases of the NPMS. It is important that the Risk Management Plan Template be viewed as an evolving document that will change over the life of the project - with risks increasing and decreasing at different phases.

A Risk Taxonomy of the most common risks related to project management has been developed to aid in the preparation of the Risk Management Plan.

For asset/construction projects that have a high probability for future contract amendments due to residual risk, the Residual Risk Allowances and the Pre-Approved Amount for Anticipated Amendments (PAAA) process has been established. For projects where consulting fees are greater than $1 million and/or construction contracts are greater than $10 million (amounts include RMC and GST/HST), Consultant and Construction Risk Management Plans are to be established which will specifically focus on the risks relative to the contracted design and construction requirements. Note that these are one-time risk plans that are a requirement in order to identify a Residual Risk Allowances and the Pre-Approved Amount for Anticipated Amendments (PAAA), which will be used by Acquisitions Branch to establish the Pre-Approved Amount for Anticipated Amendments (PAAA).

For projects carried out for and funded by other government departments (OGDs), the NPMS practices are to be applied in keeping with client approvals and governance, as per the real property OGD procedure.

Note: The Risk Management Plan template as per this procedure replaces and has incorporated the requirements for the previous Risk Management Plan Checklist (PWGSC-TPSGC 189) and has therefore been rescinded.

Real Property Context

This procedure is to be implemented in conjunction with the National Project Management System (NPMS) Departmental Policy and National Project Management System (NPMS) Directive for Real Property Projects.

Risk Management Toolkit

Related Documents